Funeral homes with significant violations can enter a training program designed to increase compliance with the Funeral Rule. The three-year program is known as the Funeral Rule Offenders Program (FROP), and is an alternative to an FTC lawsuit that could lead to a federal court order and civil penalties of up to $16,000 per violation. It is run by the National Funeral Directors Association and provides participants with a legal review of the price disclosures required by the Funeral Rule, and on-going training, testing and monitoring for compliance with the Rule. In addition, funeral homes that participate in the program make a voluntary payment to the U.S. Treasury in place of a civil penalty, and pay annual administrative fees to the Association.

FTC inspections during 2011 encountered varying levels of compliance:

In Northwest Indiana, one of 12 funeral homes inspected had significant violations;

In Maui, Hawaii, none of the four funeral homes inspected had significant violations;

In the New York City area, as well as parts of Connecticut and New Jersey, one of 22 funeral homes inspected had significant violations;

In Cleveland, Ohio, four of 16 funeral homes inspected had significant violations;

In Columbia, South Carolina, five significant violations were found in 10 funeral homes inspected;

In Austin, Texas, four of 19 funeral homes inspected had significant violations; and

In addition, the FTC identified 33 funeral homes, within the nine states, with only minor compliance deficiencies. In such cases, the FTC contacts the funeral home and requires it to provide evidence that it has corrected the problems.

Since the FROP program began in 1996, the FTC has inspected more than 2,500 funeral homes and found fewer than 400 engaged in significant Rule violations. In conducting its annual enforcement sweeps, the agency has received assistance from several state attorneys general. This year, the FTC wishes to thank Ohio Attorney General Mike DeWine for the valuable assistance provided by his office.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

Source: ftc.gov

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